Wen warned that major political change is needed lest the nation fall victim to another "cultural revolution". Was this a slightly veiled reference to the recent actions and statements of that other Chinese leader, Party Leader Bo Xilai? We'll try to do some research on that as its implications could be enormous. A power struggle in China is clearly not priced into world markets.

Now, China's Xinhua news agency is reporting that Bo Xilai is out From Xinhua:

BEIJING, March 15 (Xinhua) -- Zhang Dejiang has been appointed Party chief of Chongqing, replacing Bo Xilai, according to a decision of the Communist Party of China (CPC) Central Committee announced Thursday.

Bo will no longer serve as secretary, standing committee member or member of the CPC Chongqing municipal committee, according to the decision.

Bo, born in July 1949, became mayor of Dalian, Liaoning province, in 1993. He served as governor of Liaoning and minister of commerce before being appointed Party chief of Chongqing in 2007.

This is big news in China as Bo Xilai was in line to become a major player in the Communist party.